Our conventional wisdom is that a buyer for a business has to have at least 20% of the price in cash to put down, plus cover hefty closing costs.

In recent press reports we are all lead to believe that there is a “credit crunch” making it hard to get any credit for anything.

In spite of this, we recently (November 2007) completed a deal where the buyer got over $30,000 at closing from the bank. He was able to put that toward the cost of inventory, which cost a lot less. In other words, the buyer came out with money left over from the financing! A true “no down payment” deal!

It takes two things (at least) to do that. A lot of home equity and a business plan for the purchase that shows enough cash flow to cover the debt and still leave enough to live on. It also helps that the buyers spouse has a job with a good income.

But the point still is made very strongly that if you have a decent deal, a good credit rating, and the desire to buy a business, there is money available! Our local banks in New Hampshire didn’t pig out on the wave of sub prime and other risky mortgages. Most of the senior bank leadership lived through the crashes of the early 1990’s and learned from the experience. Call us for the name of the friendly banker for this deal. If you are looking in his part of the state, he is a great resource.

We still ask customers what they have for resources to put down, and we need to know your financial situation before we disclose lots of information about a business. But it is not always necessary to have lots of cash if you have other resources.

Even if you don’t have home equity you can now buy a business with the funds in a 401K if you do it properly.

Interest rates are still low by historical standards, and it is a great time to buy a business!

       KEENE:  Park Avenue Deli & Market, long a fixture on Keene’s west side, has been sold .  The new owners are Brian and Karen Cagney of Mont Vernon, NH, who plan to build upon the popularity of the business.  “We are very excited to take over ownership of a business that has served generations of

     The Park Avenue Deli & Market  has been in business at 30 Park Avenue in Keene for many years, formerly as Pare’s Market, and then for many years as McLay’s Market.  The Cagneys used to buy sandwiches at the market years ago when they lived in the area.  They will be continuing the business with the same departments and staff, and look forward to renewing their connections with the area and providing excellent service and value to the residents and businesses in the area.  In addition to the normal range of convenience store items, the market does a robust meat and deli business, and provides catered lunch items for businesses and parties in the area.

We recently brokered the sale of Popeye’s Variety Store in Conway from Bruce Frechette to Bryan Dries and Edward Kugler.

Other than one other owner, this popular, local convenience store with gas, has been in the Frechette family for many years. For the last five years, Bruce Frechette has carried on the family connection to this store serving the local population as well as the heavy tourist traffic that brings in business.

The new owners, Bryan Dries and Ed Kugler look forward to providing the same level of service that customers have come to expect in what will now be called Conway Variety.